The joint NARUC-NASEO DER Integration and Compensation Initiative (DER I&C Initiative) is designed to support state policymakers in addressing policy and regulatory challenges related to the integration, operation, and compensation of distributed energy resources (DERs) within the distribution grid, bulk power system, and wholesale energy markets. The Initiative will support implementation of FERC Order 2222 in RTO/ISO regions. State oversight of transmission-distribution-customer (TDC) coordination and of aggregated DERs outside of RTO/ISO regions is also included in the scope of this initiative.
DERs are connecting to electric grids at unprecedented rates and are forecast to accelerate. DERs will affect almost every aspect of the utility, wholesale, and retail arrangements. To optimize benefits for states and customers, policy makers will need to consider new technical and economic issues such as how to measure and value the benefits DERs provide; how to compensate DERs for these benefits; grid planning for increased DER penetration; maximizing the value of federal funding; and how aggregated DERs can be managed and leveraged to support resource adequacy and resilience at lower cost than other infrastructure solutions.
The DER I&C Initiative will equip regulators and policy makers with tools, best practices, and peer networks to inform decision making on DERs in their states.
Who?
The Initiative and its activities are open to commissioners and staff of all public utility commissions and the staff of state energy offices and state consumer advocates.
What?
In 2023-2024, the DER I&C Initiative will build on the latest practices and literature through a three-part curriculum. You will learn through:
- Review of best practices: learn from others to develop practical and actionable policies
- Peer-to-peer collaboration: foster a trusting cohort of participants to work together on DER challenges
- Practical problem solving: work with experts to understand challenges and create actionable solutions
- Resource toolkits: documentation from each module will support ongoing regulatory and policy decisions
The first module, The Modern Landscape, will focus on best practices and lessons learned from actual implementations of aggregated DERs. Module 2 will cover Hot Topics in the aggregated DER space today, while Module 3 will facilitate a Deep Dive into a pressing topic or challenge.